What is an ACH and how can they be fraudulent? We’re glad you asked!

An ACH transfer is one of the main ways to send or receive money online. Automated Clearing House transfers account for the online bill payments you make and the direct deposits you receive, along with other transfers. While these automatic payments and deposits are a convenient way to manage your finances, they also create an opportunity for fraudsters to take money undetected. Understanding what is ACH fraud and how most ACH scams work will allow you to better monitor and protect your finances.

Theft of personal banking information such as bank account numbers and online and mobile banking logins are some of the most common ways ACH fraud is committed. Scammers may pose as your bank, employer or a billing company reaching out for this information to complete a transfer. These communications typically come in the form of emails, letters or phone calls. Once they have this information they can take reign of your account, setting up automatic payments to themselves.

Other common types of ACH scams include:

• Work-at-home schemes. This type of ACH fraud involves the scammer reaching out as a business offering you a remote job but requires you pay an upfront fee or investment before being paid. They may also ask for your bank account information for direct deposit, gaining access to this information for future fraudulent activity.
• Overseas money transfers. A scammer will reach out usually through an email or letter asking for your help moving large funds out of their country due to a natural disaster, war or another reason designed to pull at your heartstrings. They ask for your bank account information so you can receive the money and redirect to them. The money of course never comes, and your account information has been compromised.
• Fake product offers. These products are usually advertised online as discounted items or free trial offers. Once they have your billing information they charge a monthly subscription amount automatically, sometimes not sending the product at all or sending a lesser version of what was advertised.

How to protect yourself from ACH scams:

• Keep your personal information secure. There are very few instances where you should give out your full account number to anyone. If you’ve started a new job recently, receive checks for the first few pay periods to make sure they are clearing before you set up direct deposit.
• Do not share your online and mobile banking login. Monitoring your account through online or mobile banking is a great way to watch out for fraudulent activity and catch it early, but it is just as important to keep your login information secure. Do not share usernames or passwords with anyone. At Northern, our new Online and Mobile Banking platform allows each member to have their own personal login. This means you don’t have to share your information with the primary or joints on your account. It’s also not a bad idea to change your password every so often, especially if you think someone may have access to your old one.
• Stop and think, “Does this sound too good to be true?” If it does, chances are, it is. If you receive an email or letter offering you more than what the person reaching out will receive it’s likely a scam. Save yourself the headache and do not respond. If you are unsure, reach out to us and we’ll be happy to help you look into it!
• Protect your information with EZShield. For just $4.99 each month, EZShield monitors you and your family’s personal information and alerts you to potential fraudulent activity.

At Northern, your peace of mind is our top priority. If you have any questions around ACH scams or other types of fraud please do not hesitate to contact us by calling 315.782.0155, connect with us via Video Banking or visit any of our relationship centers.